I use three intra-day charts with different time frames routinely for analysis purposes. The slowest one is designed to display 10 -15 bars per day (easy for me to set up because I use only tick bars – not minute bars). The second one is ten times faster than the first – producing about 100 to 1450 bars per day. The fastest is ten times faster than the second and produces 1000 to 15000 bars per day.

Why?

I trade FOREX, and the most important indicator available for FOREX trading is the moving average – which displays the trend for the selected time frame. FOREX is all about trend. Few markets are as trend dependent as FOREX markets. But, trends do change from time to time – and the trend must change in the shorter time frame BEFORE it changes in the longer time frame. My moving average indicator is the Bollinger Bands – and I use the same number of bars in the average for all three intra-day charts. However, because the charts are progressively faster the trend indicator will change in the fastest chart long before it appears in the slowest intra-day chart. The strongest possible condition for a FOREX trade is when ALL THREE intraday charts display the same trend and it is in the direction of you trade.

So, obviously, I watch the short term trend, in relation to the middle term trend to predict when the longer term trend will likely reverse. Along with my few other indicators this puts me into a good position to exit a position at a desirable point in time.

The next most important indicator in my system is the RMI, my only proprietary indicator. I use it to predict where tradable trend changes are most likely to occur. So I have a pretty good way to determine an attractive entry point – and an intelligent exit point.

You can get a free trial of the RMI for TradeStation by clicking the following link:

https://tradestation.tradingappstore.com/search/all/rating?search=RMI

 

 

 

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